Rail Road Construction Global Market Report 2024

The rail road construction market size has grown strongly in recent years. It will grow from $215.28 billion in 2023 to $228.82 billion in 2024 at a compound annual growth rate (CAGR) of 6.3%. The growth observed in the historical period in railroad construction can be attributed to factors such as industrialization and economic development, the expansion of trade routes, government investments in infrastructure, the need for efficient resource transportation in extractive industries, and military and strategic considerations. These factors collectively contributed to the development and expansion of railroad networks during that period.

The rail road construction market size is expected to see strong growth in the next few years. It will grow to $279.82 billion in 2028 at a compound annual growth rate (CAGR) of 5.2%. The anticipated growth in the forecast period for railroad construction can be attributed to ongoing urbanization and population growth, the expansion of globalization and international trade, a heightened focus on sustainable transportation, efforts towards infrastructure modernization and upgrades, and the increased need for efficient energy and resource transport through rail. Major trends expected in the forecast period include the modernization of existing rail infrastructure, enhancements in railway safety measures, the promotion of public-private partnerships (PPPs), global connectivity initiatives, and innovations in materials and construction methods within the railroad sector.

The railroad construction market is poised for growth due to the increasing demand for rail freight transport. Rail freight, involving the transportation of commodities by trains, offers a cost-effective and efficient means of delivery over longer distances. The upswing in rail freight demands expansion in railroad construction to accommodate more trains. Eurostat reported an 8.7% increase in rail freight transport in the European Union (EU) in 2021 compared to 2020, underscoring the role of growing rail freight demand in propelling the railroad construction market.

The railroad construction market is anticipated to benefit from the globalization of trade. The globalization of trade involves the seamless and borderless exchange of goods, services, and capital globally. Railroad construction plays a pivotal role in supporting and enhancing global trade by providing an interconnected and efficient transportation network for the movement of goods across regions and countries. The United Nations Conference on Trade and Development reported a historic milestone in 2021, with global trade reaching $28.5 trillion, marking a substantial 25% growth from 2020 and a noteworthy 13% surge compared to pre-COVID-19 levels in 2019. This robust growth emphasizes the driving force of globalization in the railroad construction market.

Innovations in products emerge as a significant trend in the railroad construction market, with major companies striving to introduce inventive solutions to maintain their market positions. Pandrol, a rail technology company based in France, addressed challenges faced by rail maintenance personnel by launching a new line of rail-cutting discs in March 2021. These discs aim to enhance rail-cutting productivity, reduce maintenance costs, improve safety, and minimize environmental impact by producing less scrap during rail track cutting.

Major companies in the railroad construction sector are focusing on versatile excavators, particularly crawler-based excavators. Mecalac, a US-based manufacturer of compact construction equipment, introduced the 136MRail rail-road excavator in the North American market in October 2022. This crawler-based excavator, equipped with factory-integrated hi-rail, caters to Class 1 railroads, light rail, and industrial rail operations. With functions combining excavation with exceptional lifting, towing, and loading capabilities, the 136MRail is versatile and suitable for a range of service and maintenance tasks in both on and off-rail environments.

In August 2022, RailWorks Corp, a US-based construction and maintenance rail contractor, strengthened its capabilities by acquiring H&H Engineering Construction, Inc. This strategic acquisition enhances RailWorks Corp's capacity to provide expanded services to clients, as H&H Engineering Construction, Inc. is a US-based contractor specializing in rail maintenance and construction services for transit, ports, freight railroads, and industrial firms.

Major companies operating in the rail road construction market report are Railroad Construction Company Inc., SNCF Group, Union Pacific Corporation, OAO Rossiyskie zheleznye dorogi, Burlington Northern and Santa Fe Railway, CSX Corporation, Canadian Pacific Railway Ltd., Deutsche Bahn, JSC Russian Railways, Kansas City Southern Railway, Canadian National Railway Company, Norfolk Southern Corporation, China Railway Engineering Group Company Limited, China Railway Construction Corporation Group, Larsen & Toubro Ltd., China Communications Construction Group Ltd., Actividades de Construccion y Servicios SA, Skanska USA Inc., Kiewit Corporation, Bechtel Corporation, Fluor Corporation, The Lane Construction Corporation, Granite Construction Inc., Walsh Group Ltd., Turner Corporation, Whiting-Turner Contracting Company, Clark Construction Group LLC, PCL family of companies, Tutor Perini Corporation, Dragados USA Inc., Flatiron Construction Corporation, Zachry Group, Skanska AB, Vinci SA, Bouygues SA, ACS Group, Ferrovial SA.

Asia-Pacific was the largest region in the rail road construction market in 2023. The regions covered in the rail road construction market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the rail road construction market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary train types associated with railroad construction include metro trains, light rail, bullet trains, and high-speed rail (HSR). Metro trains serve as a form of interurban transportation connecting urban settlements or cities within a metropolitan area. Railroad construction can involve different types such as new construction and renovation, catering to applications in both urban and rural settings.

The rail road construction market research report is one of a series of new reports that provides rail road construction market statistics, including rail road construction industry global market size, regional shares, competitors with rail road construction market share, detailed rail road construction market segments, market trends, and opportunities, and any further data you may need to thrive in the rail road construction industry. This rail road construction market research report deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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